Make child maintenance deductions from an employee's pay
How to make deductions
You must deduct the amount of child maintenance stated on the deduction from earnings order (DEO) from your employee鈥檚 net earnings or pension.
By law you must send payments to the Child Maintenance Service. They鈥檒l send the money to the other parent to help cover their child鈥檚 living costs.
How it works
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Check what counts as earnings.
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Calculate 60% of your employee鈥檚 net earnings (known as their 鈥榩rotected earnings鈥�).
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Make the deduction from your employee鈥檚 net earnings - as long as it leaves them with their protected earnings.
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Take off an extra 拢1 towards your administrative costs (if you want to).
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Send the deduction to the Child Maintenance Service.
If you鈥檙e unable to deduct the full amount from their protected earnings, you must send an updated payment schedule to the Child Maintenance Service.
How to calculate protected earnings
You must make sure that your deduction leaves your employee with at least 60% of their net earnings (known as 鈥榩rotected earnings鈥�).
You can still deduct the 拢1 administrative cost if it takes your employee鈥檚 income below their protected earnings rate - but not if it takes their income below the National Minimum Wage.
If you can deduct the full amount from your employee鈥檚 protected earnings
Deduct the full amount from your employee鈥檚 earnings if it does not affect their protected earnings. Send it to the Child Maintenance Service as soon as you make the deduction.
Example
The amount your employee owes in child maintenance is 拢150 a month.
Your employee鈥檚 net earnings are 拢1,200 a month.
Their protected earnings are 拢720 a month.
Net earnings of 拢1,200 minus the protected earnings of 拢720 = 拢480.
In this case, the employee has enough left for you to deduct the full amount of 拢150.
If you cannot deduct the full amount from your employee鈥檚 protected earnings
If you cannot deduct the full amount, you must:
- send any deduction you鈥檝e been able to make to the Child Maintenance Service
- keep a record of the unpaid difference
- send an updated payment schedule to the Child Maintenance Service
You must calculate the unpaid difference, plus the regular amount your employee owes in child maintenance the next time you pay them. You must still leave your employee with their protected earnings.
Example
The amount your employee owes in child maintenance is 拢250 a month.
Your employee鈥檚 net earnings are 拢500 a month.
Their protected earnings are 拢300 a month.
Net earnings of 拢500 minus the protected earnings of 拢300 = 拢200.
In this case, the employee does not have enough left for you to deduct the full amount of 拢250.
You must send 拢200 to the Child Maintenance Service.
The unpaid difference of 拢50 is carried forward to the next time you pay your employee.
If the unpaid difference is carried forward for several weeks before being repaid, keep a record of the ongoing amount.
If you pay your employee holiday pay in advance
You鈥檒l have to:
- calculate your employee鈥檚 total net earnings for the pay period
- multiply the protected earnings and the deduction by the number of weeks in the pay period
- send the deduction to the Child Maintenance Service
Example
The earnings include 1 week鈥檚 pay plus 2 weeks鈥� holiday pay paid in advance.
Your employee has net earnings of 拢160 a week.
The amount your employee owes in child maintenance is 拢32 a week and the protected earnings are 拢96 a week.
Your employee鈥檚 net earnings are 拢160 x 3 = 拢480 (1 week鈥檚 pay + 2 weeks鈥� holiday pay).
Net earnings of 拢480 minus the protected earnings of 拢96 x 3 (拢288) = 拢192
In this case, the employee has enough left for you to deduct the full amount of 拢96 (拢32 x 3).
If you need to deduct other debts from your employees pay
If your employee has other debt to pay, for example council tax debt, a court can issue:
- an Attachment of Earnings Order (England, Wales and Northern Ireland)
- Earnings Arrestment Order (Scotland)
How you prioritise a deduction depends on which country the order was issued in.
In England, Wales and Northern Ireland, a DEO takes priority unless you have received a priority Attachment of Earnings Order (AEO) for your employee.
In Scotland, a DEO takes priority over other deductions.